Assessment of Prospect Towards Cashless Society: A Case of Mobile Payments in Emerging Markets
Due to the rapid rise of communication innovation technologies, mobile payments system can be considered as one of the fast-growing business opportunities by both academics and practitioners. A case in point, financial technology has contributed dramatically to an increase of mobile payments in many sectors, e.g., banking, commerce, retails, as well as in many countries (both advanced markets and emerging markets). However, each country has its own growth rate pattern in mobile payments. The puzzle is why there are different growth rate patterns when such financial technology is now available and affordable in emerging markets. And why there is less adoption of mobile technology in emerging markets. The literature on mobile payments is a shortcoming in many aspects. A case in point, the Technology Acceptance Model (TAM) and its extent are too parsimonious for explaining adoption in technology across markets, especially in some emerging markets. This paper, thus, examines the progress toward a cashless society by focusing on a different pattern of growth of mobile payments and an adoption of mobile technology in emerging markets. This study proposes a new integrated and comprehensive model to explain such different growth rate pattern to fill the literature gap and contribute to the existing literature. To better explain and predict such different growth rate, a model should include more variables such as macroeconomic and social factors. For instance, digital inequality, personal affordability, infrastructure or digital policy. Nonetheless, the limitation of the proposed model will be a case of data availability.
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